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is considered essential for reducing poverty, improving economic resilience, and
supporting inclusive economic growth.
In recent years, digital finance has emerged as an important mechanism for
promoting financial inclusion. Digital financial services, including mobile payments,
internet banking, digital lending platforms, and mobile money, allow users to access
financial services without relying on traditional physical banking infrastructure. By
reducing transaction costs and increasing service accessibility, digital finance enables
financial institutions to reach previously underserved populations, particularly in
developing economies (Ozili, 2018).
Empirical evidence from various countries demonstrates the significant impact of
digital financial services on financial inclusion. One of the most widely cited examples is
the expansion of mobile money services in Kenya. Suri and Jack (2016) show that the
diffusion of the M-Pesa mobile money platform significantly increased access to financial
services and contributed to poverty reduction by enabling households to save, transfer
money, and manage financial risks more effectively.
The rapid development of fintech ecosystems has further accelerated the digital
transformation of financial services. Fintech innovations introduce new business models
and digital platforms that expand financial access through alternative service delivery
channels. According to Gomber et al. (2018), fintech-driven innovations reshape
traditional financial intermediation by integrating digital technologies into payment
systems, lending markets, and financial service delivery. These developments create new
opportunities to extend financial services to individuals and small businesses that were
previously excluded from the formal financial system.
Recent literature reviews also emphasize the growing importance of fintech in
financial inclusion. A systematic review by Sangwan et al. (2024) identifies several major
research themes in fintech-enabled financial inclusion, including the emergence of digital
financial services, the transformation of financial market structures, and the evolving
roles of stakeholders within fintech ecosystems. While the literature highlights the
potential of fintech to improve financial access, empirical evidence regarding its broader
socioeconomic impacts remains limited, particularly in emerging and developing
economies.
2.2 Financial digitalization and artificial intelligence
Financial digitalization refers to the integration of digital technologies into financial
systems, transforming traditional financial intermediation and enabling new financial
service models. This process involves the application of technologies such as cloud
computing, big data analytics, blockchain, and artificial intelligence (AI) in financial
services (Gomber et al., 2018).
Among these technologies, AI has emerged as one of the most transformative
drivers of innovation in digital finance. AI applications in financial services include
automated credit scoring, fraud detection systems, algorithmic trading, risk management,
customer service chatbots, and predictive analytics. By processing large volumes of data
and identifying complex patterns, AI enables financial institutions to improve operational
efficiency and develop more personalized financial services.
One particularly important application of AI in financial inclusion is AI-based credit
scoring. Traditional credit evaluation methods often rely on formal financial histories,
which many individuals in developing economies do not possess. AI-driven credit
assessment models can analyze alternative data sources, such as mobile phone usage,

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